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  1. avatar says

    Sir,
    who will evaluate the performance of neds in the remuneration committee????( as they will also be members of the board of directors thus required by cgc to have their own performance evaluated too)

    • Avatar of MikeLittle says

      If you download a copy of the financial statements of a UK company called Devro (I use it EXTENSIVELY in my P1 lectures!) you’ll see that Devro has TWO remuneration committees. The first is comprised of neds and they determine the remuneration of the executive directors. The second is comprised of executive directors and they determine the remuneration of the neds.

      But download Devro – it’s a brilliant illustration of P1 in action

      • avatar says

        It is written in the annual report of devro that ‘The two-committee approach ensures that no Director is involved in setting his or her own remuneration’ . That means the same principle will apply to evaluation of performance that no director will be involved in his own evaluation, which means that the remuneration committee(comprised entirely of neds) will evaluate the performance of the rest of the directors on the board(whether ed or ned) and the remuneration committee(comprising of eds) will evaluate the performance of the neds on the other remuneration committee. So every individual director has had his performance evaluated. The only question that remains in which remuneration committee will evaluate the performance of the board as a whole????

      • Avatar of MikeLittle says

        Am I not correct that, within the remuneration committees’ report there is mention of the fact that the committees take advice from a (totally) independent recruitment company?

        If that doesn’t satisfy you :-) then keep looking through the Devro annual report. There should be something in there that answers your question – I just cannot remember seeing it

      • Avatar of MikeLittle says

        You’re welcome – and enjoy Devro – it’s a BRILLIANT annual report and financial statements – there’s just SO MUCH of direct relevance to P1

  2. avatar says

    Sir,
    who will evaluate the performance of neds in the remuneration committee????( as they will also be members of the board of directors thus required by cgc to have their own performance evaluated too)

      • Avatar of tejot says

        Sir,
        Related to the renumeration package question which starts at 1 min 30 sec. It has been referred that the question appears in the revision kit.
        Thanks

      • Avatar of MikeLittle says

        From memory (don’t make me listen to myself – not even for 1 minute 30 seconds!) there was a question in a BPP revision kit – an early edition just after P1 was introduced into the exam structure. It’s no longer in the revision kit. Probably in the lecture I said “There used to be a question in the revision kit which ….” but it’s gone now

        Sorry

        :-(

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